United States v. Ruston Gas Turbines, Inc. (S.D. Tex. 1982)

• Case Name
• United States v. Ruston Gas Turbines, Inc. (S.D. Tex. 1982)

• Date Filed
• 09/22/1982

• Enforcement Agency
• DOJ

• Foreign Official
• Two sub-directors of Pemex:  one was responsible for the purchase of goods and equipment, the other was responsible for the exploration and production of Mexican oil and natural gas.

• Date of Conduct
• 1977 to 1980

• Nature of Business
• Manufacture and sale of turbine (but not process) compression equipment to Petroleos Mexicanos (“Pemex”), Mexico’s national oil company, by Ruston Gas Turbines, Inc. (“Ruston”), a Texas corporation and a domestic concern.

• Influence to be Obtained
• To obtain purchase orders from Pemex for turbine compression systems and related equipment for Ruston and Crawford.

• Enforcement
• Ruston pled guilty to one count charging a bribery violation of the FCPA and was fined $750,000.

• Amount of the Value
• 5% of the contract price, plus $200,000.

• Amount of Business Related to Payment
• Ruston and other companies involved received $225 million in purchase orders from Pemex.

• Intermediary
• Grupo Delta, a Mexican corporation, which held itself out as Crawford Enterprises, Inc.’s (“Crawford”) sales representative in Mexico while actually acting as the conduit for the bribe payments to the Pemex officials.

• Total Sanction
• $ 750,000

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

Ruston Gas Turbines, Inc.

• Citation
• United States v. Ruston Gas Turbines, Inc., No. 82-cr-00207 (S.D. Tex. 1982).

• Date Filed
• 09/22/1982

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Anti-Bribery

• Other Statutory Provision
• None

• Disposition
• Plea Agreement

• Defendant Jurisdictional Basis
• Domestic Concern

• Defendant's Citizenship
• United States

• Individual Sanction
• $750,000 Criminal Fine.